Key Points:
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Bit Digital reported third-quarter revenue of $27.1 million, down 11% year over year and nearly 16% below analyst estimates.
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Ether staking revenue declined approximately 66%, while Bitcoin mining revenue fell as the company continued winding down its mining operations.
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The company held approximately 163,726 ETH, valued at $439.4 million as of September 30.
Revenue Miss Pressures Bit Digital Shares
Shares of Nasdaq-listed Bit Digital declined in premarket trading on Thursday after the cryptocurrency treasury and AI infrastructure company reported third-quarter revenue below analyst expectations.
The company generated $27.1 million in revenue for the quarter, compared with $30.5 million in the same period last year, representing an 11% decline. The result also fell nearly 16% short of analyst consensus estimates of approximately $32.2 million, leaving a revenue gap of about $5.1 million.
According to the company’s Thursday filing with the US Securities and Exchange Commission, net income attributable to shareholders reached $28.5 million, equivalent to $0.08 per diluted share.
The revenue shortfall comes as Bit Digital continues adjusting its business operations around Ethereum holdings and AI infrastructure, following its earlier strategic shift away from Bitcoin-focused treasury management.
Ether Staking Revenue Declines
Ether staking generated approximately $1 million in revenue during the third quarter, down from $2.9 million a year earlier. The decline represents a reduction of roughly 66%, making staking a significant contributor to the company’s weaker year-over-year revenue performance.
Despite the lower staking income, Bit Digital maintained substantial exposure to Ethereum through its corporate treasury.
The company reported holdings equivalent to approximately 163,726 ETH as of September 30, valued at $439.4 million. The position reflects its strategy of using Ether as its primary digital asset treasury holding.
Bit Digital shifted its corporate treasury strategy from Bitcoin to Ether in July 2025, marking a significant change in its approach to cryptocurrency holdings.
Bitcoin Mining Business Continues to Contract
Revenue from Bitcoin mining also declined substantially during the quarter.
Bit Digital generated $2 million from mining operations, compared with $7.4 million in the same period last year. The decrease reflects the company’s continued reduction of its Bitcoin mining activities.
In its filing, the company described the lower revenue as “consistent with the continued winddown of the business.”
The decline highlights the changing composition of Bit Digital’s operations as it moves away from traditional cryptocurrency mining and places greater emphasis on Ethereum-related activities and AI infrastructure.
Strategic Transition Faces Revenue Challenges
Bit Digital’s latest results illustrate the financial challenges associated with its ongoing business transition. Lower staking income and reduced Bitcoin mining revenue contributed to the year-over-year decline, while the company’s Ethereum holdings remain a substantial component of its balance sheet strategy.
The nearly $5.1 million revenue shortfall also raises questions about the pace at which its evolving business model can generate operating income.
Investors will likely monitor whether the company’s AI infrastructure activities and Ethereum-related operations can establish more consistent revenue streams as the Bitcoin mining business continues to contract.
For now, Bit Digital’s third-quarter performance highlights the distinction between maintaining a sizable cryptocurrency treasury and generating recurring revenue from its operating businesses.
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